The House of Representatives has urged the Central Bank of Nigeria (CBN) to suspend the implementation of the cashless policy on deposits which has taken effect from Wednesday, 18th September, 2019 until appropriate and extensive consultative process is concluded.
Accordingly, the House mandated the Committee on Banking and Currency to interface with CBN to ascertain the propriety, relevance and the actual need for the implementation of that aspect of the cashless policy at this time considering the prevailing economic situation of the country and to report back to the House within 4 weeks.
The Green Chamber took these decisions Thursday during plenary, sequel to a motion on matter of urgent public important moved by Benjamin Kalu (APC, Abia).
Kalu while presenting the motion said the House is aware that CBN introduced a policy on cash-based transactions which imposed a cash handling charge on daily cash withdrawals that exceed N150,0000 for individuals and $18,000,000 for corporate bodies in 2012.
He stated that the House is further aware that the policy on cash-based transactions (withdrawals) in banks, was aimed at reducing and not eliminating the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions.
The Chairman Committee on Media and Public Affairs further said the House, “notes that the cash policy was introduced for a number of key reasons including the need to drive development and modernization of our payment system in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020, to reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach, inter alia.
“Notes also that that a variety of benefits are expected to be derived by various stakeholders from an increased utilization of e-payment systems which include: increased convenience, more service options, reduced risk of cash-related crimes, cheaper access to (out-of-branch) banking services, access to credit and financial inclusion for consumers; faster access to capital, reduced revenue leakage and reduced cash handling costs for corporations and increased tax collections, greater financial inclusion, increased economic development for government.
“Cognizant that the Central Bank of Nigeria has signaled the implementation of a policy which would signal the imposition ofcharges on deposits in addition to already existing charges on withdrawals.
“Informed that the charges, which took effect from Wednesday 18th September, 2019 will attract 3% processing fees for withdrawals and 2% per cent processing fees for lodgments of amounts above $600,000 for individual accounts; 5% processing fees for withdrawals and 3% per cent processing fee for lodgments of amounts above 443,000,000 for corporate accounts.
“Deeply worried that the implementation of cashless policy on Withdrawals has negative impacts on micro, mini, small, and medium enterprises which are clearly the engines of growth of the economy and employment generation, thereby throwing many of them out of business and sending more Nigerians into poverty. forcing more traders and micro investors to carry cash about With its attendant security challenges
“Aggrieved that while the impact of the cashless policy on Withdrawals is still starring us all in our faces as well as other numerous burdensome charges by Nigerian Money Deposit Banks heavily impacting on businesses, the Central Bank of Nigeria deemed it necessary to impose the implementation of cashless policy on deposits without due consultations with all shades of stakeholder who Will be impacted by the policy.
“Deeply concerned that the Central Bank of Nigeria did not consider the people as the prime, important and indeed the centre piece of policy-makmg, even as Section 14(2)(b) of the Constitution of the Federal Republic of Nigeria, 1999 (As Altered) provides for the security and welfare of the people as the primary purpose of government”.
Meanwhile, the House called on the Federal Ministries, Departments and Agencies (MDAs) to transmit all signed, ratified and domesticated Treaties and other International Agreements, both bilateral and multilateral to the Register of Treaties in the Federal Ministry of Justice and to the National Assembly within two (2) weeks.
It also called on the Registrar of Treaties in the Federal Ministry of Justice to transmit the list of all Ratified and Domesticated Treaties and International Agreements to the National Assembly within Three (3) weeks for further legislative action.
The Lower Chamber urged the President of the Federal Republic of Nigeria to ensure that all signed Treaties are presented to the National Assembly within Thirty (30) days for domestication, and to ensure early engagement and involvement of the National Assembly in the Negotiation Team of any Treaty and International Agreement to which Nigeria is interested.
It further urge the President to ensure that all signed Treaties and other International Agreements are initiated and presented to the National Assembly as an Executive Bill and to stop all counterpart funding of all Agreements and Protocols with financial implications until such Agreements and Protocols are domesticated by the National Assembly.
The House mandated the Committee on Treaties, Protocol and Agreements to, as a matter of urgency, commence the reviews of all Treaties, Agreements and Protocols signed and ratified by Nigeria.
These resolutions followed a motion on Transmission of all Treaties by Federal Ministries, Departments and Agencies (MDAs) to the National Assembly sponsored by Nicholas Ossai (PDP, Delta).
James Kwen, Abuja
